Red Cross Ethical Dilemmas

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Submitted By nickc2211
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Case 18: American Red Cross The American Red Cross was founded by Clara Barton in 1881 after she brought the model of the International Red Cross back from her travels with IRC. The setup of this organization is to help those who need disaster relief assistance. The ARC has helped with the World Wars and numerous other wars that the U.S was in. They provide relief to over 70,000 disasters each year. However, within the last decade they have been widely criticized for their response to two major disasters in the US as well as erratic leadership position moves causing concern that the organizational focus is lost. In addition, their control problems extended into the mismanagement of funds and ARC is made up of 500,000 volunteers and 35,000 employees, and at the top there is a 12-20 member governing board of directors. Over the last ten years, there has been numerous individuals in the CEO role because their predecessors were released for misconduct. The organization is further tarnished for the large severance packages that are handed to the dismissed executives. Critics have observed that leadership focus for a good chunk of two years went into searching for the right leadership rather than management of goals and infrastructure. The lack of control extended out to blood donation program where there was a lack of communication with the blood testing facilities. The disasters of Hurricane Katrina and 9/11 were two of the biggest events where relief and assistance were needed. Both instances resulted in a delayed and apparent apathetic response from the ARC. In addition to the disasters themselves, the funding raised to help this relief effort were mismanaged. Volunteers had unauthorized access to personal financial information when receiving funds. Some volunteers had arrest warrants and lengthy criminal backgrounds that should never have been allowed to help…...

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